LAWS(DLH)-2005-3-18

PRASAR BHARTI Vs. JOSLIN COMMUNICATIONS PVT LTD

Decided On March 15, 2005
PRASAR BHARTI Appellant
V/S
JOSLIN COMMUNICATIONS PVT. LTD. Respondents

JUDGEMENT

(1.) By this petition under Section 11 (6)(c) of the Arbitration & Conciliation Act, 1996, petitioner Prasar Bharti (Broadcasting Corporation of India) has prayed for appointment of a sole arbitrator to adjudicate upon their disputes with the respondent M/s. Joslin Communications Pvt.Ltd., arising out of Agreement between the parties dated 31.1.1995.

(2.) Facts, in brief, are: That an agreement dated 31.1.1995 was executed between Doordarshan Commercial Service (hereinafter 'DCS') and M/s. Joslin Communications Pvt.Ltd. (hereinafter the 'respondent') whereby respondent was appointed as an accredited agent. The agreement inter alia provided that respondent will be responsible for payment of advertisement and other related bills jointly and severally with advertisers. The respondents were entitled to 15% commission. The agency was responsible for payment of advertisement and other related bills, jointly and severally with the advertisers. The respondent was to pay to DCS its bill according to the rules framed and within the credit period of 45 days from the first of the month following the date of the telecast of advertisement. They were also made liable to pay interest @ 18% per annum on all amounts due and payable beyond the stipulated period. It is pleaded that in 1997 the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 was notified, in terms of Section 3 whereof, all contracts entered into by Akashvani or Doordarshan are deemed to have been been incurred, entered into and engaged to be done with or for Prasar Bharati. And in terms of Section 16(c) all sums due to the Central Government in relation to Doordarshan are deemed to be due to the Corporation.

(3.) In pursuance of the Agreement dated 31.1.1995, respondent released programmes 'Cinema Cinema', 'Kingdom Adventure', 'Yeh Ishq Nahin Asan', 'Prem Sudha', 'Spot', etc. which were duly telecast on Doordarshan. The respondent availed commercial time in respect of the said programmes and placed advertisements/sponsorship programmes with the Doordarshan Commercial Service for which bills were raised from time to time. The amount billed by the petitioner was not paid and as on 31.3.2003 a sum of Rs.1,98,36,684/- was due from the respondent, which included the principal sum of Rs.1,02,43,125/- and interest @ 18% per annum. It is further pleaded that Director General, Doordarshan has failed to appoint an arbitrator as per the agreement, on account of paucity of officers available to act as arbitrators, thus, a situation, as contemplated by Section 11(6)(c) of the Act has arisen. The petitioner has prayed for appointment of a sole arbitrator. Respondents have filed their reply, opposing the prayer. I have heard learned counsel for the parties.